Link

Prime Minister Datuk Seri Najib Razak today announced
the introduction of the Goods and Services Tax, and proposed the
abolition of the sales and services tax. He said the new tax will be
effective on April 1, 2015.

The announcement comes as anti-GST activists converged outside the parliament (pic, right).
Najib is currently presenting a RM264.4 billion budget for 2014. He
estimated that the fiscal deficit will be at 3.5% with revenue expected
at RM224 billion.
Among the highlights of his speech are:

The domestic economy is projected to grow at a stronger pace of between 5.0% to 5.5%.

The unemployment rate is estimated at 3.1% while the inflation rate will remain low at between 2% and 3%.

Goods exports are expected to grow 2.5% due to improving external
demand while on the supply side, the construction sector is expected to
grow 9.6%.

The per capita income for 2014 is expected to reach RM34,126 compared
with RM24,879 in 2009, an increase of 37% over six years.

It is possible that Malaysia will achieve developed nation status much earlier than 2020.

RM 217.7 billion is for operating expenditure while RM46.5 billion for development expenditure.

RM63.6 billion allocated for emoluments and RM36.6 billion for supplies and services.

RM29 billion allocated to the economic sector.

RM10.5 billion allocated to the social sector for education, training, health, welfare, housing and community development.

RM3.9 billion allocated to the security sector, RM1.1 billion for general administration, RM2 billion for contingencies.

In 2014, Federal Government revenue collection is estimated at RM224.1 billion, up RM4 billion from 2013.

Federal Government fiscal deficit expected to further decline from 4% of GDP in 2013 to 3.5% in 2014.

RM1.2 billion allocated for operating and development expenditure in
2013 and 2014 to implement Visit Malaysia Year 2014 programmes,
targeting 28 million tourists.

2015 announced as the Year of Festivals.

To promote the tourism, RM2 billion will be provided to the Special
Tourism Infrastructure Fund under Bank Pembangunan, to finance cost of
building hotels, resorts and theme parks and purchase & replacement
of equipment related to the tourism.

No more tax filing for individual who pay tax (PCB) on a monthly basis.

GST also exempted on electricity (partial exemption up to 200 units), piped water supply, public transportation.

Update on personal income tax: Highest income bracket increased from
RM100,000 to RM400,000. Tax for this income bracket reduced from 26% to
24-25%.

Buying and selling houses, renting, not affected by GST.

300,000 people who earn RM4,000 a month now no longer to pay income tax.

RM600 miilion grant for institutes of higher learning to encourage the publishing of international-class research papers.

Education: RM450 million to maintaining and improving old schools -
SK, SJK(C), SJK(T), MARA, Sekolah Agama included; RM168 million for new
schools; RM209 million for improving the quality of teaching in
Malaysian schools.

1Malaysia Book Voucher Program: RM250 for each student available

Transport: Subsidies for rural train commutes: For communities in rural Pahang and Kelantan.

RM3.3 billion allocated to providing the best medical supplies to public healthcare institutions.

Sugar subsidy reduced by RM0.34 as of October 26, 2014. The new price is RM2.84 per kg.

Allocations for the disabled: RM441million to develop amenities and provide help to the disabled.

Property: Government to revise Real Property Gain Tax or RPGT:
-30% for properties held for 3 years or less.
-20% (4 years) 15% (5 years and beyond)
-RPGT for non-citizens: 30% (1-5 years), 5% (5 years and above).